DENVER, Jan. 30,
2024 /PRNewswire/ -- M.D.C. Holdings, Inc. (NYSE:
MDC), announced results for the quarter and full year ended
December 31, 2023. As previously
announced on January 18, 2024, MDC
has entered into a definitive agreement to be acquired by a
wholly-owned subsidiary of Sekisui House in an all-cash transaction
(the "Merger"). Consummation of the Merger is subject to
shareholder approval, regulatory approval and completion of other
customary closing conditions.
About MDC
M.D.C. Holdings, Inc. was founded in
1972. MDC's homebuilding subsidiaries, which operate under the name
Richmond American Homes, have helped more than 240,000 homebuyers
achieve the American Dream since 1977. One of the largest
homebuilders in the nation, MDC is committed to quality and value
that is reflected in each home its subsidiaries build. The Richmond
American companies have operations in Alabama, Arizona, California, Colorado, Florida, Idaho, Maryland, Nevada, New
Mexico, Oregon,
Pennsylvania, Tennessee, Texas, Utah,
Virginia and Washington. Mortgage lending, insurance and
title services are offered by the following MDC subsidiaries,
respectively: HomeAmerican Mortgage Corporation, American Home
Insurance Agency, Inc. and American Home Title and Escrow Company.
M.D.C. Holdings, Inc. stock is traded on the New York Stock
Exchange under the symbol "MDC." For more information, visit
www.mdcholdings.com.
Forward-Looking Statements
Any statements regarding our business, financial condition,
results of operation, cash flows, strategies and prospects, may
constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause the actual results,
performance or achievements of MDC to be materially different from
any future results, performance or achievements expressed or
implied by the forward-looking statements. Such factors include,
among other things, (1) general economic conditions, changes in
consumer confidence, inflation or deflation and employment levels;
(2) changes in business conditions experienced by MDC, including
cancellation rates, net home orders, home gross margins, land and
home values and subdivision counts; (3) changes in interest rates,
mortgage lending programs and the availability of credit; (4)
changes in the market value of MDC's investments in marketable
securities; (5) uncertainty in the mortgage lending industry,
including repurchase requirements associated with HomeAmerican
Mortgage Corporation's sale of mortgage loans (6) the relative
stability of debt and equity markets; (7) competition; (8) the
availability and cost of land and other raw materials used by MDC
in its homebuilding operations; (9) the availability and cost of
performance bonds and insurance covering risks associated with our
business; (10) shortages and the cost of labor; (11) weather
related slowdowns and natural disasters; (12) slow growth
initiatives; (13) building moratoria; (14) governmental regulation,
including orders addressing the COVID-19 pandemic, the
interpretation of tax, labor and environmental laws; (15) terrorist
acts and other acts of war; (16) changes in energy prices; and (17)
other factors over which MDC has little or no
control. Additional information about the risks and
uncertainties applicable to MDC's business is contained in MDC's
Form 10-K for the year ended December 31,
2023, which is scheduled to be filed with the Securities and
Exchange Commission today. All forward-looking statements
are made as of their date, and the risk that actual results will
differ materially from expectations expressed will increase with
the passage of time. MDC undertakes no duty to update publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise. However, any further disclosures made
on related subjects in our subsequent filings, releases or webcasts
should be consulted.
|
M.D.C. HOLDINGS,
INC.
Consolidated Statements of Operations and
Comprehensive Income
(Unaudited)
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands,
except per share amounts)
|
|
Homebuilding:
|
|
|
|
|
|
|
|
|
Home sale
revenues
|
$ 1,309,760
|
|
$ 1,487,279
|
|
$ 4,520,296
|
|
$ 5,586,264
|
|
Home cost of
sales
|
(1,062,125)
|
|
(1,170,989)
|
|
(3,684,487)
|
|
(4,214,379)
|
|
Inventory
impairments
|
(2,200)
|
|
(92,800)
|
|
(29,700)
|
|
(121,875)
|
|
Total cost of
sales
|
(1,064,325)
|
|
(1,263,789)
|
|
(3,714,187)
|
|
(4,336,254)
|
|
Gross
profit
|
245,435
|
|
223,490
|
|
806,109
|
|
1,250,010
|
|
Selling, general and
administrative expenses
|
(126,862)
|
|
(131,797)
|
|
(429,894)
|
|
(536,395)
|
|
Interest and other
income
|
21,755
|
|
7,046
|
|
73,567
|
|
10,843
|
|
Other income
(expense), net
|
(637)
|
|
(4,258)
|
|
350
|
|
(32,991)
|
|
Homebuilding pretax
income
|
139,691
|
|
94,481
|
|
450,132
|
|
691,467
|
|
|
|
|
|
|
|
|
|
Financial
Services:
|
|
|
|
|
|
|
|
|
Revenues
|
36,696
|
|
32,262
|
|
122,570
|
|
131,723
|
|
Expenses
|
(16,712)
|
|
(16,887)
|
|
(62,942)
|
|
(71,327)
|
|
Other income
(expense), net
|
4,603
|
|
3,364
|
|
16,345
|
|
7,991
|
|
Financial services
pretax income
|
24,587
|
|
18,739
|
|
75,973
|
|
68,387
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
164,278
|
|
113,220
|
|
526,105
|
|
759,854
|
|
Provision for income
taxes
|
(44,771)
|
|
(33,444)
|
|
(125,100)
|
|
(197,715)
|
|
Net income
|
$
119,507
|
|
$
79,776
|
|
$
401,005
|
|
$
562,139
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income net of tax:
|
|
|
|
|
|
|
|
|
Unrealized gain
related to available-for-sale debt
ecurities
|
$
(40)
|
|
$
—
|
|
$
51
|
|
$
—
|
|
Other comprehensive
income
|
(40)
|
|
—
|
|
51
|
|
—
|
|
Comprehensive
income
|
$
119,467
|
|
$
79,776
|
|
$
401,056
|
|
$
562,139
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
Basic
|
$
1.60
|
|
$
1.11
|
|
$
5.42
|
|
$
7.87
|
|
Diluted
|
$
1.56
|
|
$
1.08
|
|
$
5.29
|
|
$
7.67
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
74,216,586
|
|
71,646,237
|
|
73,505,508
|
|
71,035,558
|
|
Diluted
|
76,126,163
|
|
73,179,135
|
|
75,357,965
|
|
72,943,844
|
|
|
|
|
|
|
|
|
|
Dividends declared per
share
|
$
0.55
|
|
$
0.50
|
|
$
2.10
|
|
$
2.00
|
|
M.D.C. HOLDINGS,
INC.
Consolidated Balance
Sheets
(Unaudited)
|
|
|
December 31,
2023
|
|
December 31,
2022
|
|
|
|
|
|
(Dollars in thousands,
except
per share
amounts)
|
|
ASSETS
|
|
|
|
|
Homebuilding:
|
|
|
|
|
Cash and cash
equivalents
|
$ 1,475,964
|
|
$
696,075
|
|
Restricted
cash
|
4,094
|
|
3,143
|
|
Marketable
securities
|
—
|
|
443,712
|
|
Trade and other
receivables
|
119,004
|
|
116,364
|
|
Inventories:
|
|
|
|
|
Housing completed or
under construction
|
1,881,268
|
|
1,722,061
|
|
Land and land under
development
|
1,419,778
|
|
1,793,718
|
|
Total
inventories
|
3,301,046
|
|
3,515,779
|
|
Property and
equipment, net
|
82,218
|
|
63,730
|
|
Deferred tax assets,
net
|
38,830
|
|
49,252
|
|
Prepaids and other
assets
|
76,036
|
|
70,007
|
|
Total homebuilding
assets
|
5,097,192
|
|
4,958,062
|
|
Financial
Services:
|
|
|
|
|
Cash and cash
equivalents
|
162,839
|
|
17,877
|
|
Marketable
securities
|
78,250
|
|
117,388
|
|
Mortgage loans
held-for-sale, net
|
258,212
|
|
229,513
|
|
Other
assets
|
34,592
|
|
40,432
|
|
Total financial
services assets
|
533,893
|
|
405,210
|
|
Total
Assets
|
$ 5,631,085
|
|
$ 5,363,272
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Homebuilding:
|
|
|
|
|
Accounts
payable
|
$
114,852
|
|
$
109,218
|
|
Accrued and other
liabilities
|
326,478
|
|
383,406
|
|
Revolving credit
facility
|
10,000
|
|
10,000
|
|
Senior notes,
net
|
1,483,404
|
|
1,482,576
|
|
Total homebuilding
liabilities
|
1,934,734
|
|
1,985,200
|
|
Financial
Services:
|
|
|
|
|
Accounts payable and
accrued liabilities
|
113,485
|
|
110,536
|
|
Mortgage repurchase
facility
|
204,981
|
|
175,752
|
|
Total financial
services liabilities
|
318,466
|
|
286,288
|
|
Total
Liabilities
|
2,253,200
|
|
2,271,488
|
|
Stockholders'
Equity
|
|
|
|
|
Preferred stock, $0.01
par value; 25,000,000 shares authorized; none issued or
outstanding
|
—
|
|
—
|
|
Common stock, $0.01
par value; 250,000,000 shares authorized; 74,661,479 and 72,585,596
issued and
outstanding at December 31, 2023 and December
31, 2022, respectively
|
747
|
|
726
|
|
Additional
paid-in-capital
|
1,824,434
|
|
1,784,173
|
|
Retained
earnings
|
1,552,653
|
|
1,306,885
|
|
Accumulated other
comprehensive income
|
51
|
|
—
|
|
Total Stockholders'
Equity
|
3,377,885
|
|
3,091,784
|
|
Total Liabilities and
Stockholders' Equity
|
$ 5,631,085
|
|
$ 5,363,272
|
|
M.D.C. HOLDINGS,
INC.
Consolidated Statement of Cash
Flows
(Unaudited)
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
Operating
Activities:
|
|
|
|
|
|
|
|
|
Net income
|
$ 119,507
|
|
$
79,776
|
|
$ 401,005
|
|
$ 562,139
|
|
Adjustments to
reconcile net income to net cash provided by (used in)
operating activities:
|
|
|
|
|
|
|
|
|
Stock-based
compensation expense
|
9,110
|
|
10,637
|
|
23,468
|
|
60,985
|
|
Depreciation and
amortization
|
7,683
|
|
7,088
|
|
25,553
|
|
27,751
|
|
Inventory
impairments
|
2,200
|
|
92,800
|
|
29,700
|
|
121,875
|
|
Project abandonment
costs
|
918
|
|
4,371
|
|
(45)
|
|
33,129
|
|
Amortization of
discount of marketable debt securities
|
(4,809)
|
|
(3,208)
|
|
(29,673)
|
|
(4,290)
|
|
Deferred income tax
expense
|
7,800
|
|
(27,130)
|
|
10,408
|
|
(31,310)
|
|
Net changes in assets
and liabilities:
|
|
|
|
|
|
|
|
|
Trade and other
receivables
|
(22,993)
|
|
(2,463)
|
|
21,986
|
|
(21,784)
|
|
Mortgage loans
held-for-sale, net
|
(93,958)
|
|
(38,680)
|
|
(28,699)
|
|
53,016
|
|
Housing completed or
under construction
|
39,035
|
|
505,348
|
|
(163,877)
|
|
186,265
|
|
Land and land under
development
|
(106,658)
|
|
(75,662)
|
|
349,783
|
|
(95,402)
|
|
Prepaids and other
assets
|
(789)
|
|
39,786
|
|
(3,886)
|
|
31,736
|
|
Accounts payable and
accrued liabilities
|
(18,565)
|
|
(30,970)
|
|
(74,093)
|
|
(18,464)
|
|
Net cash provided by
(used in) operating activities
|
(61,519)
|
|
561,693
|
|
561,630
|
|
905,646
|
|
|
|
|
|
|
|
|
|
Investing
Activities:
|
|
|
|
|
|
|
|
|
Purchases of
marketable securities
|
(77,979)
|
|
(365,684)
|
|
(1,166,412)
|
|
(656,810)
|
|
Maturities of
marketable securities
|
430,000
|
|
100,000
|
|
1,679,000
|
|
100,000
|
|
Purchases of property
and equipment
|
(28,265)
|
|
(7,646)
|
|
(43,145)
|
|
(29,075)
|
|
Net cash provided by
(used in) investing activities
|
323,756
|
|
(273,330)
|
|
469,443
|
|
(585,885)
|
|
|
|
|
|
|
|
|
|
Financing
Activities:
|
|
|
|
|
|
|
|
|
Advances on mortgage
repurchase facility, net
|
59,511
|
|
(20,462)
|
|
29,229
|
|
(80,548)
|
|
Dividend
payments
|
(41,065)
|
|
(35,632)
|
|
(155,237)
|
|
(142,417)
|
|
Payments of deferred
debt issuance costs
|
(36)
|
|
—
|
|
(36)
|
|
—
|
|
Issuance of shares
under stock-based compensation programs, net
|
(39)
|
|
28,385
|
|
20,773
|
|
16,840
|
|
Net cash provided by
(used in) financing activities
|
18,371
|
|
(27,709)
|
|
(105,271)
|
|
(206,125)
|
|
|
|
|
|
|
|
|
|
Net increase in cash,
cash equivalents and restricted cash
|
280,608
|
|
260,654
|
|
925,802
|
|
113,636
|
|
Cash, cash equivalents
and restricted cash:
|
|
|
|
|
|
|
|
|
Beginning of
period
|
1,362,289
|
|
456,441
|
|
717,095
|
|
603,459
|
|
End of
period
|
$
1,642,897
|
|
$ 717,095
|
|
$
1,642,897
|
|
$ 717,095
|
|
|
|
|
|
|
|
|
|
Reconciliation of
cash, cash equivalents and restricted cash:
|
|
|
|
|
|
|
|
|
Homebuilding:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
1,475,964
|
|
$ 696,075
|
|
$
1,475,964
|
|
$ 696,075
|
|
Restricted
cash
|
4,094
|
|
3,143
|
|
4,094
|
|
3,143
|
|
Financial
Services:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
162,839
|
|
17,877
|
|
162,839
|
|
17,877
|
|
Total cash, cash
equivalents and restricted cash
|
$
1,642,897
|
|
$ 717,095
|
|
$
1,642,897
|
|
$ 717,095
|
|
New Home
Deliveries
|
|
|
Three Months Ended
December 31,
|
|
2023
|
|
2022
|
|
% Change
|
|
Homes
|
|
Home Sale
Revenues
|
|
Average
Price
|
|
Homes
|
|
Home Sale
Revenues
|
|
Average
Price
|
|
Homes
|
|
Home
Sale
Revenues
|
|
Average
Price
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
West
|
1,397
|
|
$
778,410
|
|
$ 557.2
|
|
1,308
|
|
$
756,109
|
|
$ 578.1
|
|
7 %
|
|
3 %
|
|
(4) %
|
|
Mountain
|
561
|
|
336,220
|
|
599.3
|
|
756
|
|
492,850
|
|
651.9
|
|
(26) %
|
|
(32) %
|
|
(8) %
|
|
East
|
442
|
|
195,130
|
|
441.5
|
|
490
|
|
238,320
|
|
486.4
|
|
(10) %
|
|
(18) %
|
|
(9) %
|
|
Total
|
2,400
|
|
$
1,309,760
|
|
$ 545.7
|
|
2,554
|
|
$
1,487,279
|
|
$ 582.3
|
|
(6) %
|
|
(12) %
|
|
(6) %
|
|
|
Year Ended December
31,
|
|
2023
|
|
2022
|
|
% Change
|
|
Homes
|
|
Home Sale
Revenues
|
|
Average
Price
|
|
Homes
|
|
Home Sale
Revenues
|
|
Average
Price
|
|
Homes
|
|
Home
Sale
Revenues
|
|
Average
Price
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
West
|
4,821
|
|
$
2,624,373
|
|
$ 544.4
|
|
5,234
|
|
$
3,024,056
|
|
$ 577.8
|
|
(8) %
|
|
(13) %
|
|
(6) %
|
|
Mountain
|
2,028
|
|
1,267,586
|
|
625.0
|
|
2,616
|
|
1,689,376
|
|
645.8
|
|
(22) %
|
|
(25) %
|
|
(3) %
|
|
East
|
1,379
|
|
628,337
|
|
455.6
|
|
1,860
|
|
872,832
|
|
469.3
|
|
(26) %
|
|
(28) %
|
|
(3) %
|
|
Total
|
8,228
|
|
$
4,520,296
|
|
$ 549.4
|
|
9,710
|
|
$
5,586,264
|
|
$ 575.3
|
|
(15) %
|
|
(19) %
|
|
(5) %
|
|
Net New
Orders
|
|
|
Three Months Ended
December 31,
|
|
2023
|
|
2022
|
|
% Change
|
|
Homes
|
|
Dollar
Value
|
|
Average
Price
1
|
|
Monthly
Absorption
Rate
2
|
|
Homes
|
|
Dollar
Value
|
|
Average
Price 1
|
|
Monthly
Absorption
Rate 2
|
|
Homes
|
|
Dollar
Value
|
|
Average
Price
|
|
Monthly
Absorption
Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
West
|
827
|
|
$
457,532
|
|
$
553.2
|
|
1.96
|
|
155
|
|
$
67,710
|
|
$
436.8
|
|
0.39
|
|
434 %
|
|
576 %
|
|
27 %
|
|
406 %
|
|
Mountain
|
372
|
|
219,867
|
|
591.0
|
|
2.29
|
|
(37)
|
|
(25,924)
|
|
700.6
|
|
(0.24)
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
East
|
316
|
|
138,770
|
|
439.1
|
|
2.79
|
|
72
|
|
32,649
|
|
453.5
|
|
0.64
|
|
339 %
|
|
325 %
|
|
(3) %
|
|
333 %
|
|
Total
|
1,515
|
|
$
816,169
|
|
$
538.7
|
|
2.17
|
|
190
|
|
$
74,435
|
|
$
391.8
|
|
0.29
|
|
697 %
|
|
996 %
|
|
38 %
|
|
660 %
|
|
|
1 Gross
order average selling price for the three months ended December 31,
2023 decreased approximately 2% year-over-year
to $543,000.
|
|
Year Ended December
31,
|
|
2023
|
|
2022
|
|
% Change
|
|
Homes
|
|
Dollar
Value
|
|
Average
Price
|
|
Monthly
Absorption
Rate
2
|
|
Homes
|
|
Dollar
Value
|
|
Average
Price
|
|
Monthly
Absorption
Rate
2
|
|
Homes
|
|
Dollar
Value
|
|
Average
Price
|
|
Monthly
Absorption
Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
West
|
4,202
|
|
$
2,399,987
|
|
$
571.2
|
|
2.51
|
|
2,909
|
|
$
1,735,202
|
|
$
596.5
|
|
2.01
|
|
44 %
|
|
38 %
|
|
(4) %
|
|
25 %
|
|
Mountain
|
1,657
|
|
1,004,360
|
|
606.1
|
|
2.50
|
|
1,157
|
|
788,734
|
|
681.7
|
|
1.85
|
|
43 %
|
|
27 %
|
|
(11) %
|
|
35 %
|
|
East
|
1,285
|
|
578,427
|
|
450.1
|
|
2.85
|
|
978
|
|
489,946
|
|
501.0
|
|
2.25
|
|
31 %
|
|
18 %
|
|
(10) %
|
|
27 %
|
|
Total
|
7,144
|
|
$
3,982,774
|
|
$
557.5
|
|
2.57
|
|
5,044
|
|
$
3,013,882
|
|
$
597.5
|
|
2.02
|
|
42 %
|
|
32 %
|
|
(7) %
|
|
27 %
|
|
|
2 Calculated
as total net new orders in period ÷ average active communities
during period ÷ number of months in period
|
|
Active
Subdivisions
|
|
|
|
|
|
|
|
|
Average Active
Subdivisions
|
|
Active
Subdivisions
|
|
Three Months
Ended
|
|
Year Ended
|
|
December 31,
|
|
%
|
|
December 31,
|
|
%
|
|
December 31,
|
|
%
|
|
2023
|
|
2022
|
|
Change
|
|
2023
|
|
2022
|
|
Change
|
|
2023
|
|
2022
|
|
Change
|
|
West
|
138
|
|
134
|
|
3 %
|
|
141
|
|
133
|
|
5 %
|
|
140
|
|
120
|
|
17 %
|
|
Mountain
|
53
|
|
53
|
|
— %
|
|
54
|
|
51
|
|
6 %
|
|
55
|
|
52
|
|
6 %
|
|
East
|
35
|
|
38
|
|
(8) %
|
|
38
|
|
37
|
|
1 %
|
|
38
|
|
36
|
|
6 %
|
|
Total
|
226
|
|
225
|
|
— %
|
|
233
|
|
222
|
|
5 %
|
|
233
|
|
208
|
|
12 %
|
|
Backlog
|
|
|
December 31,
|
|
2023
|
|
2022
|
|
% Change
|
|
Homes
|
|
Dollar
Value
|
|
Average
Price
|
|
Homes
|
|
Dollar
Value
|
|
Average
Price
|
|
Homes
|
|
Dollar
Value
|
|
Average
Price
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
West
|
1,272
|
|
$
789,317
|
|
$ 620.5
|
|
1,891
|
|
$
1,049,805
|
|
$ 555.2
|
|
(33) %
|
|
(25) %
|
|
12 %
|
|
Mountain
|
344
|
|
237,154
|
|
689.4
|
|
715
|
|
515,460
|
|
720.9
|
|
(52) %
|
|
(54) %
|
|
(4) %
|
|
East
|
274
|
|
130,524
|
|
476.4
|
|
368
|
|
187,629
|
|
509.9
|
|
(26) %
|
|
(30) %
|
|
(7) %
|
|
Total
|
1,890
|
|
$
1,156,995
|
|
$ 612.2
|
|
2,974
|
|
$
1,752,894
|
|
$ 589.4
|
|
(36) %
|
|
(34) %
|
|
4 %
|
|
Homes Completed or
Under Construction (WIP lots)
|
|
|
December 31,
|
|
%
|
|
2023
|
|
2022
|
|
Change
|
|
Unsold:
|
|
|
|
|
|
|
Completed
|
339
|
|
396
|
|
(14) %
|
|
Under
construction
|
2,709
|
|
1,063
|
|
155 %
|
|
Total unsold started
homes
|
3,048
|
|
1,459
|
|
109 %
|
|
Sold homes under
construction or completed
|
1,812
|
|
2,756
|
|
(34) %
|
|
Model homes under
construction or completed
|
542
|
|
555
|
|
(2) %
|
|
Total homes completed
or under construction
|
5,402
|
|
4,770
|
|
13 %
|
|
Lots Owned and
Optioned (including homes completed or under
construction)
|
|
|
December 31,
2023
|
|
December 31,
2022
|
|
|
|
Lots
Owned
|
|
Lots
Optioned
|
|
Total
|
|
Lots
Owned
|
|
Lots
Optioned
|
|
Total
|
|
Total
% Change
|
|
West
|
9,957
|
|
1,186
|
|
11,143
|
|
12,667
|
|
687
|
|
13,354
|
|
(17) %
|
|
Mountain
|
5,038
|
|
1,088
|
|
6,126
|
|
5,398
|
|
1,561
|
|
6,959
|
|
(12) %
|
|
East
|
3,004
|
|
2,142
|
|
5,146
|
|
3,534
|
|
1,455
|
|
4,989
|
|
3 %
|
|
Total
|
17,999
|
|
4,416
|
|
22,415
|
|
21,599
|
|
3,703
|
|
25,302
|
|
(11) %
|
|
Selling, General and
Administrative Expenses
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
2023
|
|
2022
|
|
Change
|
|
2023
|
|
2022
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
General and
administrative expenses
|
$
62,665
|
|
$
66,614
|
|
$
(3,949)
|
|
$
203,878
|
|
$
292,349
|
|
$ (88,471)
|
|
General and
administrative expenses as a
percentage of home sale revenues
|
4.8 %
|
|
4.5 %
|
|
30 bps
|
|
4.5 %
|
|
5.2 %
|
|
-70 bps
|
|
Marketing
expenses
|
$
26,199
|
|
$
25,308
|
|
$
891
|
|
$
96,807
|
|
$
103,330
|
|
$
(6,523)
|
|
Marketing expenses
as a percentage of home
sale revenues
|
2.0 %
|
|
1.7 %
|
|
30 bps
|
|
2.1 %
|
|
1.8 %
|
|
30 bps
|
|
Commissions
expenses
|
$
37,998
|
|
$
39,875
|
|
$
(1,877)
|
|
$
129,209
|
|
$
140,716
|
|
$ (11,507)
|
|
Commissions
expenses as a percentage of home
sale revenues
|
2.9 %
|
|
2.7 %
|
|
20 bps
|
|
2.9 %
|
|
2.5 %
|
|
40 bps
|
|
Total selling, general
and administrative expenses
|
$
126,862
|
|
$
131,797
|
|
$
(4,935)
|
|
$
429,894
|
|
$
536,395
|
|
$
(106,501)
|
|
Total selling,
general and administrative
expenses as a percentage
of home sale revenues
|
9.7 %
|
|
8.9 %
|
|
80 bps
|
|
9.5 %
|
|
9.6 %
|
|
-10 bps
|
|
Capitalized
Interest
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
Homebuilding interest
incurred
|
$
17,515
|
|
$
17,419
|
|
$
69,901
|
|
$
69,450
|
|
Less: Interest
capitalized
|
(17,515)
|
|
(17,419)
|
|
(69,901)
|
|
(69,450)
|
|
Homebuilding interest
expensed
|
$
—
|
|
$
—
|
|
$
—
|
|
$
—
|
|
|
|
|
|
|
|
|
|
Interest capitalized,
beginning of period
|
$
65,428
|
|
$
63,583
|
|
$
59,921
|
|
$
58,054
|
|
Plus: Interest
capitalized during period
|
17,515
|
|
17,419
|
|
69,901
|
|
69,450
|
|
Less: Previously
capitalized interest included in home and land cost of
sales
|
(18,284)
|
|
(21,081)
|
|
(65,163)
|
|
(67,583)
|
|
Interest capitalized,
end of period
|
$
64,659
|
|
$
59,921
|
|
$
64,659
|
|
$
59,921
|
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SOURCE M.D.C. Holdings, Inc.